DP Poland (LON:DPP), which operates Domino's Pizza outlets in Poland, is growing apace, it revealed in a first half trading update.
The group currently operates 12 corporate stores in Warsaw and Krakow and sub-franchises six stores in Warsaw, and its top three stores delivered average underlying earnings of over £26,000 in the first half compared to more than £7,600 in the same six months of 2014.
"We are well advanced in site negotiations and store construction for expansion into new cities in Q4 2015," added Peter Shaw , chief executive.
"Total system sales were up 23.3% in the first half of 2015 and we saw continued double digit like-for-like store growth in system sales, order count and gross profit," he added.
Indeed, the group said it had seen 11 consecutive quarters of double digit like-for-like system sales growth.
System sales refer to the total retail sales, including those from corporate and sub-franchised stores..
Broker Peel Hunt rates the shares a 'buy'.
"Although there is a short-term drag from new openings, we expect the business to continue to achieve break-even/profit at the group EBITDA level in 2018, accelerating thereafter," said analyst Nick Batram.
He added that the recent fund-raise had given the group much greater flexibility over the medium-term roll-out of the business.
"At the same time, the positive momentum in the business together with the improved balance sheet suggests a material reduction in the risk profile. There is still much to be done, but we continue to believe that Domino’s Pizza will succeed in Poland and therefore we see substantial upside from here."
Shares added 5.76% to 18.375p.